The Internal Revenue Service (IRS) has started issuing average tax refunds of $2,065 for eligible taxpayers during the first week of May 2025.
This amount represents a noticeable increase from previous years, largely due to inflation adjustments, enhanced tax credits, and changes in standard deductions. Millions of Americans are now checking their refund status, hoping to receive their payment soon.
Here’s everything you need to know about this year’s average Internal Revenue Service tax refund, including eligibility, payment timelines, and strategies to boost your refund.
Why Are Tax Refunds Higher in 2025?
Several policy changes and economic factors are driving larger tax refunds in 2025:
Key Factors Impacting Refund Amounts
| Factor | 2025 Updates |
|---|---|
| Standard Deduction | Increased to $14,600 (single), $21,900 (head of household), $29,200 (married) |
| Earned Income Tax Credit | Up to $7,830 for families with three or more qualifying children |
| Child Tax Credit | $2,000 per child under 17, partially refundable |
| American Opportunity Credit | Up to $2,500 for college education-related expenses |
| Saver’s Credit | Benefits low-income earners contributing to retirement accounts |
Who’s Eligible for the $2,065 IRS Refund?
Eligibility for receiving the average $2,065 tax refund depends on several personal and financial conditions:
1. Income Level
Low- to moderate-income individuals and families are more likely to qualify for refundable tax credits like the EITC and CTC, significantly increasing the refund amount.
2. Filing Status
Filing as married jointly often results in higher refunds due to combined incomes and higher deduction limits.
3. Number of Dependents
Parents or guardians with dependent children may benefit from the Child Tax Credit, increasing their potential refund.
4. Tax Withholding
Taxpayers who overpaid taxes through payroll deductions are typically refunded the surplus, especially if they didn’t adjust their W-4 forms.
How to Maximize Your IRS Refund in 2025
Even if you’ve already filed your return, you can take steps now to boost future refunds or ensure you’re getting every dollar owed this year:
A. Review Your Withholding
Use the Internal Revenue Service Tax Withholding Estimator to make sure you’re not overpaying or underpaying taxes throughout the year.
B. Claim All Eligible Credits
Ensure you’re claiming all credits you qualify for — including Child Tax Credit, EITC, and American Opportunity Credit.
C. Contribute to Retirement Accounts
Making contributions to an IRA or 401(k) can reduce your taxable income and boost your refund.
D. File Electronically and Early
Filing electronically and choosing direct deposit speeds up refund processing, often within 21 days.
When Will You Get Paid?
The IRS typically issues refunds within 21 days of e-filing your tax return. For May 2025, those who filed in late April are seeing payments hit bank accounts starting this week. If you’ve chosen direct deposit, you’ll likely receive it faster than mailed paper checks.
To track your refund status, use the “Where’s My Refund?” tool on the Internal Revenue Service website with your Social Security number, filing status, and exact refund amount.
Common Reasons for Refund Delays
While most refunds are processed smoothly, a few issues may cause delays:
1. Incorrect Information
Mismatched names, SSNs, or bank account numbers can trigger processing holds.
2. Errors in Credits
Incorrectly claiming tax credits may delay or reduce your refund and possibly result in an audit.
3. Fraud Detection
The IRS holds refunds when suspicious activity or duplicate filings are detected, leading to identity verification procedures.
The $2,065 Internal Revenue Service tax refunds being distributed this week in May 2025 mark a welcome financial boost for millions of Americans.
With new credit expansions, inflation-adjusted deductions, and policy updates, this year’s average refund is among the highest in recent history.
If you haven’t received yours yet, check your filing status, confirm your bank info, and monitor the Internal Revenue Service refund tracker.
Planning ahead by adjusting your withholding and contributing to retirement can help you maximize next year’s refund — or better yet, reduce your taxes owed.
FAQs
How do I check my IRS refund status?
Use the Internal Revenue Service “Where’s My Refund?” tool online or via the IRS2Go mobile app.
What’s the average IRS refund in 2025?
As of May 2025, the average tax refund is $2,065 according to recent Internal Revenue Service data.
Can I still file my taxes and get a refund for 2024?
Yes, you can file your 2024 taxes until the April 15, 2025 deadline, and still receive a refund if eligible.